Global Macro Service > Research Briefings > Eurozone

The ECB stayed put at its first meeting of 2021. The council saw developments as in line with its baseline expectations, judged the balance of risks as less tilted to the downside and added a whiff of hawkishness to its policy statement. This relative optimism looks at odds with the fast spread of the virus and high uncertainty, although the ample ammunition and flexibility imbedded in the ECB’s QE programs should suffice to preserve favourable financing conditions.